CASH FUNDS PERFORMANCE
The RBA’s overnight cash rate target was unchanged at 4.10% in September. 3-month BBSW finished the month 1bp higher at 4.14% while 6-month BBSW added 3bps to 4.40%. Expectations in the cash futures market moved to reflect a higher likelihood of a rate increase in the 2024 financial year and a lower chance of a rate cut in the second half of calendar 2024. At the end of the month, contracts implied the actual cash rate would increase from 4.07% at the end of September to an average of 4.30% in September 2024.
The benchmark Bloomberg AusBond Bank Bill index returned 0.34% over the month and 3.56% over the 12 months to the end of September.
| AUSTRALIAN CASH FUNDS | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|
| Adelaide Cash Management Trust | 0.19 | 0.60 | 1.89 | 0.70 | 0.56 |
| BT Premium Cash | 0.37 | 1.07 | 3.60 | 1.35 | 1.21 |
| IOOF Cash Management Trust | 0.30 | 1.03 | 3.58 | 1.37 | 1.37 |
| Sandhurst Cash Common Fund | 0.19 | 0.58 | 1.75 | 0.59 | 0.53 |
| UBS Cash | 0.35 | 1.15 | 3.73 | 1.39 | 1.28 |
ENHANCED CASH FUNDS PERFORMANCE
The Antares Income Fund produced a return of 0.66% in September, thus making it the month’s highest-returning enhanced cash fund in the survey for a second consecutive month. The Sandhurst Strategic Income (Class A) Fund was next with return of 0.52% while the Realm Short Term Income Fund took third place after it produced a return of 0.50%.
The returns of all three funds easily outperformed the 0.34% return produced by the Bloomberg AusBond Bank Bill Index in September. All three also exceeded the 0.37% returned by the AusBond FRN Index.
In terms of performance over the twelve months to the end of September, Antares Income Fund took over the title as the highest performing fund by producing a return of 5.84% for the period. The Mutual Income Fund slipped into second place after it returned 5.76% while Perpetual’s High Grade Treasury Fund retained its third-ranked position with a return of 5.56%.
The Bloomberg AusBond Bank Bill and FRN indices returned 3.56% and 4.63% respectively over the 12-month period to the end of September. The above-mentioned funds all outperformed the Bank Bill Index and the FRN Index over this period.
| AUSTRALIAN ENHANCED CASH FUNDS | ASX mFund | 1m (%) | 3m (%) | 1y (%) | 3y (%) | 5y (%) |
|---|---|---|---|---|---|---|
| AMP Capital Managed Treasury | 0.36 | 1.14 | 3.82 | 1.45 | 1.42 | |
| Antares Income Fund | ANT01 | 0.66 | 2.20 | 5.84 | 2.26 | 2.05 |
| Australian Ethical Cash Trust | 0.34 | 1.21 | 3.95 | 1.42 | 1.38 | |
| BT Wholesale Enhanced Cash | 0.34 | 1.24 | 4.32 | 1.86 | 1.90 | |
| Dimensional Short Term Fixed Interest | 0.32 | 1.19 | 3.66 | 0.74 | 1.07 | |
| Fiducian Capital Safe | 0.28 | -1.67 | 0.88 | 0.40 | 0.67 | |
| IOOF MultiMix Cash Enhanced Trust | 0.35 | 1.27 | 4.32 | 1.54 | 1.61 | |
| Legg Mason Western Asset Conservative Income Fund | 0.22 | 1.12 | 4.48 | 1.59 | 1.58 | |
| Mutual Income Fund | 0.41 | 1.70 | 5.76 | 2.38 | 2.32 | |
| MLC Wholesale Horizon 1 Bond Portfolio | 0.05 | 1.19 | 4.48 | 0.62 | 1.00 | |
| Henderson Cash Enhanced Trust | 0.34 | 1.30 | 4.52 | 1.51 | 1.73 | |
| Perpetual High Grade Treasury | 0.50 | 1.63 | 5.56 | 2.35 | 2.39 | |
| Prime Value Enhanced Income Fund | 0.24 | 0.99 | 3.51 | 1.63 | 1.58 | |
| Realm Short Term Income Fund | RLM02 | 0.50 | 1.62 | 5.40 | 2.80 | 2.76 |
| Sandhurst Strategic Income A | 0.52 | 1.47 | 4.38 | 1.74 | 1.66 | |
| Smarter Money Active Cash Fund | 0.46 | 1.74 | 5.16 | 1.81 | 1.91 | |
| UBS Cash Plus | 0.37 | 1.31 | 4.22 | 1.56 | 1.61 | |
| Vanguard Cash Reserve | 0.33 | 1.10 | 3.64 | 1.31 | 1.24 | |
| Vanguard Cash Plus | 0.28 | 1.35 | 3.90 | 1.16 | 1.39 | |
| Bloomberg AusBond Bank 0+Y TR AUD | 0.34 | 1.08 | 3.56 | 1.36 | 1.28 |
*End of September 2023. Return in AUD after fees.